The profit that we get from selling any property like a residential house, agricultural land or long term assets is called capital gains which is chargeable to tax. There are various schemes for saving tax on capital gains under section 54, 54C, 54B, 54F, 54D etc. However, you will have to reinvest the capital gains in certain investment instruments before a specified period to get tax benefits under aforementioned sections. If you are planning to invest the capital gain amount only for a brief period of time, particularly to avail tax benefits, Capital Gains Account Schemes (CGAS) is the best choice.
IDBI Capital Gains Account Scheme will offer two deposit types to the investors - a savings account and a term deposit account. Also, a maximum of Rs. 100 crore can be deposited in IDBI CGAS making it the apt choice for all types of investors.
Eligibility for IDBI Capital Gains Account Scheme
IDBI Capital Gain Account Scheme is offered to following entities.
- Body of individuals
- Sole proprietorship firms
- Non - individuals including Hindu Undivided Families (HUFs)
- Resident Individuals
- Association of Persons
- Partnership firms companies
Features and Benefits of IDBI Capital Gains Account Scheme
The advantages of IDBI Capital Gains Account Scheme are given below.
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Minimum and Maximum Deposit Amount
Investors can deposit any amount ranging from Rs. 10,000 to Rs. 100 crores in IDBI Capital Gains Account Scheme.
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Purpose of IDBI CGAS
All investors looking for an investment instrument to save tax on capital gains can deposit the amount in IDBI Capital Gains Account Scheme. Deposits will be accepted in form of term deposits and savings deposit.
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Investment Tenure
Investors can choose a period of minimum 15 days up to a maximum of 20 years to deposit their capital gains in IDBI account. For senior citizens, the period of investment ranges from 45 days to 20 years.
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IDBI CGAS Account Types
Investors will be offered two deposit accounts - a term deposit account and a savings account. The rate of interest for savings account will be as per RBI guidelines and for term deposits, the interest rate will be revised by Asset Liability Management Company (ALCO) at frequent intervals.
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Amount Withdrawal
No penalty will be charged for premature withdrawal of money from the time deposit account.
GST of 18% is applicable on all banking products and services from July 1, 2017 onwards.
